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Wow. How to grab defeat from the jaws of victory. Of course I'm being unfair. Kudos to the owner for steering the company through a very difficult time and to a successful deal. However, as suspected the intention is not to return cash to shareholders but continue as an investment company. The LSR experience does not inspire faith that he has the midas touch. Market clearly concurs with the share marginally down on what should be a joyous day. Theoretical SOTP NAV according to today's RNS is 144p. I am not saying that the owner doesn't have some cunning re-investment plan up his sleeve. But I will happily watch this from the sidelines. I'm now happily out (below where it could be if mgmt were more shareholder friendly but that's life). I wish all remaining shareholders the best of luck!
This is certainly testing my patience at this level. Staggering to think we could finish the year lower than were we started. With the work the operational team have done, the Tjate mining licence and the revenue coming in from Hernic and DCM it's ridiculous to think the market cap is no different one year one. I blame Breezy for saying 7p by Christmas - can't think of what else it could be really! Ah ah!
We still need commercial contracts. The RNS today will hopefully help this happen,
No need to get personal, the realists are just as entitled to their opinions as the rampers and the bla, bla, bla..ers
This morning, leading design software and services company, Autodesk, Inc. (NASDAQ:ADSK), is trading lower by nearly 15.0 percent on the session. The decline comes after the company reported earnings and announced a restructuring plan. Traders should note that ADSK stock is now trading below its important 50-day moving average. This puts the stock in a weak technical chart position.
Often when a stock declines this sharply from a high pivot it will indicate lower prices in the coming weeks. The next major chart support level for ADSK stock is around the $96.00 level. This area is where the stock broke out in May 2017. Generally, when a stock retests its breakout level it will be defended when retested.
Nicholas Santiago
InTheMoneyStocks
As an aside there was a very interesting article in the recent FT weekend about the rise of algorithmic trading and the impact of ETFs. Both strategies are constantly tweaking portfolio allocations. Market movements are exacerbated both up and down as a result, as any larger short term movement becomes a self-fulfilling prophecy. Personally I think this no bad thing for the LT private investor as it allows us to buy good assets cheap, whilst the ever growing proportion of "dumb money" just churns. In the LT intrinsic value creation will win out and be rewarded. In this respect nothing has changed from Buffet's early days...
Couldn't agree more. You have a company with an annualised FCF yield north of 10% and double digits ROCE. One parallel I can draw is with Smurfit Kappa. After their blow up it look them several years to regain trust (whilst paying down debt, which was far higher than RPC's current multiple at peak). Despite a very strong share price rise SKG arguably remains undervalued. Brokers certainly seem to think so. And the same goes for RPC. For once I think the brokers have this dead right and the market dead wrong with target prices far north of current. Bottom line is that our company is a (lower risk) cash machine, which in today's low yield world is not something to be sniffed at. I am generally a LT investor and have used today's fall to top up. I sincerely believe the market will get there. Fill your boots whilst you can
Like you always said ATA the SP is going nowhere until they show us a profit. Is this ever going to materialise...... Anyones guess but I for one are losing my patience hearing about the jam tomorrow. Is JLP just another case of overpaid upper management kicking the can down the road for their own benefit?
Management / owners have an excellent track record of delivering on M&A. They would not investing multi-millions of incremental family wealth if they did not feel very sure they could deliver. Negative share price reaction has been accentuated by the fact the share price was (wrongly) frothy with dreams of potential bid spec. I grant that this is not as satisfying as a quick exit. But long term I think this is a smart move in terms of economies of scale / diversification: negotiating power with the studios (you may have heard that Disney are squeezing operators on the margins they will earn from the new Star Wars), procurement, etc. Yes, US has been more impacted by Netflix, but frankly that risk is endemic to the industry. You either believe operators can overcome or not. Personally I see this as one of my core LT holdings. ROCE has consistently been in double digits. Not a Fevertree or an IQE but a lovely LT holding. Personally I am giving mgmt the benefits of the doubt and have topped on the dip. If the bid is abandoned the share price will rally. And if not it actually will make for a stronger business in the LT. all IMHO 